Tuesday, August 27, 2013

Rupee crash sends gold futures to record high near Rs. 33,000

Indian gold futures, which hit a record high on Tuesday, are likely to touch the keenly watched Rs. 33,000 per 10 grams mark this week, as a weakening rupee could continue to make the dollar-quoted yellow metal expensive.

Higher gold prices could dent demand in the world's biggest buyer of the yellow metal, even as traders scramble for supplies after the federal government put a quota system on imports by linking exports with domestic consumption.

The most-active gold for October delivery on the Multi Commodity Exchange (MCX) was 2.11 per cent higher at Rs. 32,549, after hitting a record of Rs. 32,677, breaching its previous record hit in November last year.

"The main reason would be rupee depreciation and high crude prices," said Gnanasekar Thiagarajan, director with Commtrendz Research.

The rupee breached the 65.56 per dollar mark to hit a record low, as a steep decline in the domestic share market following the approval of the food security bill in the lower house of parliament hurt sentiment.

The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal.

Buying is advised on dips to Rs. 32,400, with a stop loss at 32,200, targeting Rs. 33,000, said Thiagarajan.

Silver for September delivery on the MCX was 2.54 per cent higher at Rs. 55,155 rupees per kg.

Buying is advised in silver at Rs. 55,800 rupees, with a target at Rs. 57,000 rupees, and a stop loss at Rs. 55,100, said Thiagarajan.

No comments:

Post a Comment